Ouster Inc. OUST Shares Rally 32.20% on Earnings Outlook, Surging Lidar Demand

Ouster Inc. (OUST) shares surged 1.85% on Wednesday, marking the third consecutive day of gains. The stock climbed to its highest level since October 2025, with an intraday rally of 15.18% propelling the 32.20% rally over three trading sessions. This sharp rebound has outpaced broader market indices and positioned the lidar technology firm as a standout performer in a mixed equity landscape.

Analysts highlight the upcoming November 4 earnings report as a key catalyst. While the company is projected to post a $0.43 loss per share—a 20.37% year-over-year improvement—revenue is forecast to rise 30.88% to $36.75 million, driven by growing demand for its lidar sensors in industrial and automotive applications. The Zacks Consensus Estimate for full-year 2025 revenue of $144.25 million reflects 29.84% annual growth, underscoring the company’s ability to scale despite ongoing losses.

Ouster’s strategic positioning in the high-growth lidar sector further supports its momentum. The company operates in an industry ranked 50th out of over 250 sectors by Zacks, placing it in the top 21% for growth potential. Institutional activity, including recent purchases by DnB Asset Management and Psagot Value Holdings, suggests confidence in its long-term trajectory. Meanwhile, a “Moderate Buy” analyst recommendation and a Zacks Rank of #3 (Hold) indicate cautious optimism about its fundamentals.

Operational progress is another tailwind. Ouster reported a 30% year-over-year revenue increase in Q2 2025, with GAAP and non-GAAP gross margins expanding by over 1,100 basis points each. The firm’s $229 million in cash reserves as of June 30, 2025, provides flexibility for R&D and operational expansion. CEO Angus Pacala emphasized a three-pronged strategy: product innovation, scaling software-attached business models, and advancing toward profitability, with recent shipment of 5,500 lidar sensors signaling commercial traction.

Risks persist, however. The lidar market remains highly competitive, with rivals like Hesai and Velodyne challenging market share. Supply chain dependencies and historical losses raise questions about Ouster’s path to profitability. Investors will closely watch the November earnings report and subsequent revisions to analyst estimates, which will likely shape the stock’s near-term direction. For now, Ouster’s revenue growth, margin expansion, and leadership in autonomous technology position it as a compelling long-term play, provided it can sustain its innovation edge and operational discipline.